May 5th, 2025 at 6:29 pm

Fact Pattern: You are a buyer’s agent with a C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). The “Property Type” on your BRBC is solely for the specific property located at 123 Elm Street in Any City, California. The buyer enters into a contract to purchase the Elm Street property. Unfortunately, many issues come up during escrow, and the buyer is thinking about cancelling the purchase. To help decide, the buyer would like to go see a few other properties. You still have 2 months left on your BRBC representation period.

Multiple Choice Question: Should you modify your BRBC before showing other properties to the buyer? Pick the best answer:

A. Yes.
B. No, because touring other properties pertains to the purchase and/or cancellation of 123 Elm Street.
C. No, because you can wait until the buyer writes an offer for another property.
D. It depends on whether the other properties are listed in the MLS. 

Answer: Answer A is the best answer. Your BRBC allows you to represent the buyer for 123 Elm Street only. Best practices dictate that you modify the BRBC to include other properties before touring those other properties with the buyer. You can revise your BRBC using C.A.R.’s Modification of Terms – Buyer Broker Agreement (Form MT-BR).

Answer B could be correct, especially if the standard-form language in the BRBC explicitly allowed you to look at other properties. It does not. However, even if the BRBC gave you that explicit authority, you have no entitlement to compensation in the event that the buyer buys a property other than 123 Elm Street. To help make sure you will get paid, you may be best off revising the ”Property Type” of your BRBC before showing other properties to the buyer.

Answer C is correct to the extent that it complies with California law. However, in addition to complying with the law, you must also comply with the terms of the BRBC contract (as discussed in Answers A and B), and with the MLS rules (as discussed in Answer D below).

As for the law, it merely requires you to enter into a buyer-broker agreement as soon as practicable, before writing an offer. In fact, the law does not clearly address whether your original BRBC for 123 Elm Street would be sufficient for you to show other properties. Hence, updating your BRBC before writing an offer for another property, as stated in Answer C, would be a great way to resolve that lack of clarity in the law.

Answer D is wrong. C.A.R.’s Model MLS Rules require all MLS participants working with a buyer to enter into a buyer-broker agreement before touring a home. (Be advised that your local MLS rules may differ from C.A.R.’s Model MLS Rules.) The Model MLS Rules do not clearly limit that requirement to MLS listings only, as stated in Answer D. Additionally, like the law, the Model Rules do not clearly address whether the original BRBC for Elm Street is enough before you show the buyer another property.

Copyright© 2025 Shared Success Center, LLC (serving HomeServices of America companies). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of May 5, 2025. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.

 

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